Particle.news
Download on the App Store

BYD Reports First Profit Drop in Four Years as China Price War Squeezes Margins

The company is shifting toward higher‑margin overseas sales to rebuild earnings.

Overview

  • BYD, which reported results Friday, said 2025 net profit fell 19% to 32.6 billion yuan, missing analyst forecasts compiled by Bloomberg and LSEG.
  • Revenue rose 3.5% to about 804 billion yuan as vehicle deliveries hit a record 4.6 million, a gap that points to lower average prices after repeated cuts in China.
  • Chairman Wang Chuanfu called the market a brutal knockout stage, and profit in the fourth quarter dropped about 38% year on year in a third straight quarterly decline.
  • Overseas growth has become the focus, with more than 1.05 million vehicles sold abroad in 2025 and a 2026 target of about 1.3 million supported by new factories and ocean carriers.
  • BYD is rolling out a faster‑charging Blade battery that can reach near full in about nine minutes and has trimmed headcount 10.2% to 869,622 as it seeks to restore pricing power and control costs.